Vancouver’s QLT Inc. (TSX:QLT) may have posted a US$1-million loss in the second quarter of 2010, but a restructured agreement with partner Novartis is bearing fruit as the drug maker collects more revenue from the sale of its lead product.
Visudyne is used to treat an eye condition known as age-related macular degeneration.
QLT attributed its loss, which compares with an US$8.6 million profit in the same period last year, to an absence of income from discontinued operations. The company reported US$7.7 million of income from discontinued operations in the second quarter of 2009.
QLT also indicated that profit was impacted by a reduction in net foreign exchange gains.
Although Visudyne sales for the second quarter were US$24 million, down 16% from the same time last year, QLT reported US$12 million in revenue, a 15% increase from the second quarter of 2009.
The greater revenue-to-sale ratio reflects a restructuring of the profit-sharing deal QLT has with distribution and marketing partner Novartis.
QLT did not change its guidance but said it expects worldwide sales of Visudyne in 2010 to be near the bottom end of its previous forecast of US$90 million to US$100 million.
QLT is largely in the lab these days, with two products expected to enter Phase 2 studies this year.
The company has US$186 million in cash.
The company’s share price, which closed Monday at $5.77, fluctuated little during mid-day trading Tuesday.
BIV Daily reported on a study released by QLT in June that demonstrated Visudyne could reduce the number of treatments patients require when taken in combination with a competing drug known as Lucentis. (See “QLT seeks to boost sales by combining drug therapies ” – June 23)